LONDON (Alliance News) - Verona Pharma PLC Thursday said it intends to raise up to GBP14 million before expenses in a share placing, subscription, and open offer, which it said it will use to fund further development of its RPL554 drug.
The drug development company focuses on medicines to treat respiratory diseases, said the funds will also be used in part for additional pre-clinical work to prepare VRP700 for the next series of clinical studies in patients with chronic severe coughs.
Verona Phamra said the placing involves the issue of 298.75 million shares on a non-pre-emptive basis to raise gross proceeds of approximately GBP6.6 million.
It said the subscription involves the issue of 292 million new shares on a non-pre-emptive basis to raise gross proceeds of approximately GBP6.4 million.
"I am delighted at the strong demand for shares from institutions in both the UK and US for this proposed fundraising, which was significantly oversubscribed. We intend to progress our lead pipeline asset, RPL554 in further Phase 2 studies, as soon as possible, through the next significant value inflection point," said Chief Executive officer Jans-Anders Karlsson in a statement.
Shares in Verona Pharma closed 1.5% lower in trading Thursday, at 3.40 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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